On December 13, local time, Federal Reserve Chairman Jerome Powell announced at a press conference that the Fed will pause interest rate hikes in December. He said that although the Fed did not rule out the possibility of further rate hikes at the appropriate time, they decided to keep the federal interest rate target range at 5., given that interest rates are now close to their peak25%-5.50% between. In addition, Powell also revealed that the Fed discussed the timing of interest rate cuts at the meeting. This decision was unanimously supported by all voting members.
Further development: The Fed's decision has been widely watched and interpreted by the market. The decision indicates that the Fed is more conservative in its economic growth expectations and believes that this year's interest rate adjustment is coming to an end. At the same time, Powell revealed the expectation of a rate cut, which was interpreted as the Fed will continue to monitor the global economic situation and changes in financial markets, and adjust monetary policy as needed. This position makes investors optimistic about the future market movements.
Stimulated by the news that the Federal Reserve has paused interest rate hikes, on December 13, local time, the United States showed a comprehensive momentum. The Dow Jones Industrial Index, the Nasdaq Index, and the S&P 500 Index**38% and 137%, of which the Dow Jones broke through a record high of 37,000 points in one fell swoop. These data suggest that investors are optimistic about the U.S. economy and believe that the Fed's stance will bring more room for it.
Further development: The market** is mainly due to investors' expectations for the U.S. economy. The Fed's decision indicates that they are more optimistic about the current economic situation, which injects momentum into the current economic situation. In addition, in the case of U.S. stocks continuing to be the best in the near future, some investors may also have the mentality of catching up with the bottom, hoping to seize more opportunities. Therefore, the momentum of US stocks may continue for some time, but investors still need to remain vigilant and pay close attention to market changes.
The news of the Fed's pause in interest rate hikes also had a positive impact on the market. On December 13, local time, ** exceeded 2%, while the offshore yuan rose nearly 600 basis points against the US dollar to 71365。This positive news has made investors turn to safe-haven assets, making them their top choice.
Further development: ** sought after as a safe-haven asset against the backdrop of increased economic uncertainty. The Fed's signal implies that monetary policy will be more accommodative, which has heightened investors' concerns about inflation, which in turn has increased demand. At the same time, the sharp rise of the offshore yuan against the US dollar also reflects the market's expectations for China's economic growth, which also has a positive impact on China. On the whole, the market is expected to continue to maintain a trend.
According to data released by the U.S. Department of Labor, the adjusted U.S. Producer** Index (PPI) for November 2023 was unchanged from October's data and 0.** year-on-year from the same period last year9%, slightly lower than expected. This data shows that inflationary pressures in the United States are relatively low, which is contrary to the market's concerns about inflation.
Further development: Although the producer index in the United States is 0 year-on-year9% did not meet the expected level, but still showed some degree of inflationary pressure. Especially in the context of slowing economic growth, the recovery of inflation is crucial for the recovery of the economy. Therefore, controlling inflation remains an important concern for the Fed. In the future, the market will pay close attention to changes in inflation data and further adjustments to the Fed's monetary policy.
According to a report released by the German Institute for Economic Research, Germany's GDP is expected to decline by 05%, which would tip the German economy into recession for the second year in a row. According to the report, the German economy faces multiple challenges, including a global slowdown, geopolitical turmoil in Europe, and tightening monetary policy in the eurozone. In addition, the budget crisis facing Germany** will also limit its relief measures, further dragging down the economy.
Further development: Germany, one of Europe's largest economies, will have a significant impact on Europe as a whole. At present, Europe is facing multiple challenges, including friction, political uncertainty and other issues, which has increased the downward pressure on the German economy. According to a report by the German Institute for Economic Research, the German economy will continue to face difficulties in the coming years and more measures will be needed to stimulate economic growth. This will have a negative impact on the recovery of the European economy and will also have headwinds for investors and markets.
Summary: The Federal Reserve decided to pause interest rate hikes, releasing ** signals, resulting in US stocks across the board**, and the Dow hitting a record high;** Soaring, offshore renminbi rose sharply against the US dollar;The German economy is expected to fall into recession for the second year in a row. These events have had a certain impact on the global financial market, and investors need to pay close attention to market changes and allocate their portfolios reasonably.